Harrods has earmarked more than £60 million to compensate alleged victims of historical abuse connected to its former owner, Mohamed Al Fayed, who died in 2023.
The luxury department store expects over 100 former employees to make claims through the redress scheme, which remains open until March 2026. Each claimant could receive up to £385,000 in compensation.
A response to serious allegations
The compensation scheme was launched in March 2025 for individuals who say they were abused by Al Fayed during his ownership of Harrods, between 1985 and 2010.
Multiple women have accused Al Fayed of rape and sexual assault, and the Metropolitan Police confirmed that 146 people have come forward in connection with the investigation.
Harrods has set aside £57 million to pay compensation, with an additional £5.3 million reserved for legal and administrative costs — bringing the total to £62.3 million.
Payments underway
Managing Director Michael Ward said that more than 100 survivors have joined the scheme since it opened.
Under the plan, victims who agree to a psychiatric assessment can receive up to £385,000, while those who opt out of the medical review can receive up to £150,000. Every eligible participant will also receive £200,000 in general damages, and treatment costs may be covered.
Financial impact and accountability
Partly because of the scheme, Harrods reported a £34.3 million loss in its most recent financial year — a sharp contrast to the £111 million profit recorded the previous year.
In its statement, Harrods said: “While we cannot undo the past, we are committed to doing the right thing as an organisation. We want to ensure that such behaviour can never be repeated.”
To qualify for compensation, claimants must show that they experienced sexual assault or intrusive medical testing linked to their employment and that Harrods bears some responsibility. Those who accept compensation must agree not to pursue further legal action.
Business challenges ahead
Beyond the compensation scheme, Harrods — which also runs smaller outlets at Heathrow and Gatwick airports and a chain of beauty stores — reported revenues of just over £1 billion for 2024, roughly unchanged from the previous year. The company cited weaker beauty sales and system upgrades as additional pressures.
“The current global and domestic environment has made trading in the luxury sector more difficult,” Ward acknowledged. “But we remain confident in Harrods’ strength, resilience, and long-term growth prospects.”
Al Fayed, who owned Harrods for 25 years before selling it in 2010, was never charged in connection with the allegations prior to his death in 2023. Photo by user: Sokkk y, Wikimedia commons.